APPENDIX TABLES
Singapore
WT/TPR/S/202
Page 111
Table AI.1
Source of productivity growth, 2003-07
(Per cent)
Output
2003
2004
2005
2006
2007
3.4
8.6
7.0
7.9
7.4
Capital
1.4
1.7
1.6
2.1
2.8
Labour
-0.6
0.8
1.9
2.9
3.7
2.6
6.1
3.5
2.9
0.9
Labour productivity growth
4.7
7.0
2.7
1.5
-0.9
Capital productivity growth
0.6
5.3
4.1
4.1
2.3
TFP
Note:
All growth rates are expressed in log terms.
Source: Based on data provided by the Singapore authorities.
WT/TPR/S/202
Page 112
Trade Policy Review
Table AI.2
Inflows of foreign direct investment by country and region, 2003-07a
(S$ million)
2003
Total
2006
2007
33,514.3
23,185.5
39,315.1
38,155.3
1,218.3
926.5
1,944.5
1,900.4
1,551.6
Indonesia
417.0
459.8
356.7
1,109.9
440.9
Malaysia
794.8
346.2
1,614.9
523.7
913.0
Australia
212.3
550.5
193.0
-2.1
666.8
China
260.3
353.5
78.6
935.9
624.7
Chinese Taipei
1,697.2
35.4
-565.4
244.2
-285.0
European Communitiesb
4,137.9
9,911.7
10,836.7
12,615.0
14,042.2
-818.9
362.6
-397.0
264.0
396.8
India
181.4
204.9
547.1
1,042.2
1,320.8
Japan
2,119.4
2,536.6
2,495.5
5,192.7
3,608.2
699.3
339.5
287.4
435.8
1,206.9
New Zealand
0.0
-6.2
786.1
-466.6
63.7
United States
1,608.9
7,491.4
-4,038.6
1,765.6
786.4
Otherc
9,005.0
10,807.9
11,017.6
15,388.0
14,172.2
Hong Kong, China
Korea, Rep. of
b
c
2005
20,321.1
ASEAN
a
2004
Preliminary set. Figures for 2003-06 include equity, inter-company loans and reinvested earnings. Figures for 2007 include only
equity and reinvested earnings.
For 2003 EC15, then EC25.
Other Europe (non-EC countries), Central and South America, Bermuda.
Source: Data provided by the authorities of Singapore.
Singapore
WT/TPR/S/202
Page 113
Table AI.3
Stock of foreign direct investment by country and region, 2003-06
(S$ million)
2003
Total inward stock
2004
2005
2006
251,652.1
285,876.7
327,044.7
345,873.1
58,447.7
64,215.3
78,442.2
81,284.7
Brunei Darussalam
341.2
357.9
380.7
311.0
China
867.9
380.3
819.1
1,544.7
4,050.1
4,584.5
4,918.0
6,279.7
352.0
479.5
1,271.6
1,580.6
1,669.3
1,097.3
721.2
528.2
33,970.8
37,513.6
44,464.6
43,966.8
Korea, Rep. of
1,681.7
846.7
1,257.2
1,623.0
Malaysia
4,557.3
5,145.9
8,255.1
8,659.1
Myanmar
7.2
7.6
14.7
14.7
910.8
1,120.1
1,057.7
776.0
Asia
Hong Kong, China
India
Indonesia
Japan
Philippines
Chinese Taipei
5,909.4
5,731.8
7,213.2
7,665.8
Thailand
996.1
1,046.0
1,365.6
1,421.0
Viet Nam
24.0
32.7
21.1
12.8
8,506.4
8,808.6
11,817.2
11,723.7
ASEAN
Europe
106,302.4
121,906.2
140,817.8
151,518.0
France
5,381.2
5,574.8
6,132.2
6,643.4
Germany
6,179.6
7,321.5
8,102.6
8,202.3
27,584.5
32,263.0
33,672.7
34,467.5
Netherlands
Norway
4,669.0
6,238.4
8,048.6
9,987.7
16,938.6
16,547.2
21,806.9
25,830.7
United Kingdom
39,369.1
45,195.4
50,892.9
52,621.1
a
84,336.5
98,988.2
110,777.6
115,510.7
37,674.4
45,151.8
45,358.4
46,097.9
Canada
2,606.1
2,865.5
2,574.3
2,555.2
Australia
2,097.1
2,700.9
2,854.7
2,600.2
145.2
142.4
223.1
876.1
39,911.1
43,159.8
48,776.5
54,786.6
4,468.1
5,734.8
7,997.7
6,154.3
155,712.6
77,618.5
182,479.1
86,270.9
197,042.1
100,936.5
210,449.4
106,401.7
Switzerland
European Union
United States
New Zealand
South and Central America and the Caribbean
Other
Total outward stock
Asia
Brunei Darussalam
61.4
63.6
59.7
59.3
233.8
124.3
122.1
116.1
China
19,820.2
22,188.8
26,359.7
27,418.0
Hong Kong, China
11,242.9
11,944.8
15,163.6
14,018.3
1,138.9
1,250.7
1,972.6
2,862.5
10,390.7
12,025.3
14,221.3
15,222.4
Japan
1,974.8
2,277.5
2,550.7
2,228.3
Korea, Rep. of
2,556.8
2,833.5
3,149.7
3,184.3
66.8
83.0
81.5
81.6
Malaysia
13,592.9
14,782.9
16,349.7
16,380.3
Myanmar
1,132.3
701.8
906.7
977.6
Philippines
3,228.7
3,020.1
3,262.7
3,548.4
Chinese Taipei
3,687.6
3,814.9
4,514.5
4,935.4
Thailand
4,705.8
7,224.6
8,374.2
11,478.8
Cambodia
India
Indonesia
Laos
Viet Nam
ASEAN
1,461.9
1,525.5
1,708.5
1,642.3
34,874.3
39,551.1
45,086.4
49,506.9
Table AI.3 (cont'd)
WT/TPR/S/202
Page 114
Trade Policy Review
2003
Europe
2004
2005
2006
13,582.6
16,706.8
15,725.2
24,982.8
France
411.4
238.0
232.9
192.0
Germany
107.2
393.4
410.7
432.4
Netherlands
748.5
1,009.3
1,101.3
1,095.7
Switzerland
United Kingdom
European Communitiesa
United States
Canada
Australia
New Zealand
South and Central America and the Caribbean
Other
a
For 2003 EC15, then EC25.
Note:
As at year-end.
601.8
598.0
624.9
625.1
7,606.5
7,251.5
7,121.8
15,624.7
10,295.7
11,348.9
10,708.5
19,207.1
9,031.7
9,833.2
9,824.7
8,584.5
107.7
122.1
232.7
248.6
4,647.7
11,081.0
9,777.0
9,718.1
1,067.1
1,287.2
1,256.5
1,264.6
42,460.5
44,277.8
46,911.2
47,486.2
7,196.7
12,900.2
12,378.3
11,763.0
Source: Data provided by the authorities of Singapore.
Singapore
WT/TPR/S/202
Page 115
Table AI.4
Inflows of foreign direct investment by economic activity, 2003-07
(S$ million)
Total inflows
2003
2004
2005
2006
2007a
20,321.1
33,514.3
23,185.5
39,315.1
Agriculture, fishery and forestry
-1.7
-11.5
-5.6
6.4
-4.6
Mining and quarrying
-0.7
-2.0
0.5
6.3
23.3
6,387.1
6,570.8
9,232.8
10,051.9
11,021.4
-37.4
-64.8
16.0
-22
7.1
Trade/commerce
3,654.4
7,585.4
3,290.2
7,688.3
10,125.4
Financial & insurance
5,193.2
13,453.9
4,318.2
11,899.9
4,669.6
Real estate
1,434.3
2,885.9
1,180.0
3,023.5
4,376.1
Other services
3,679.4
2,804.3
5,186.5
5,859.4
7,437.2
12.5
292.3
-33.1
801.4
499.8
Manufacturing
Construction
Other
38,155.3
a
Preliminary.
Note:
Figures for 2003-06 include equity, inter-company loans and reinvested earnings. Figures for 2007 include only equity and
reinvested earnings.
Source: Data provided by the authorities of Singapore.
WT/TPR/S/202
Page 116
Trade Policy Review
Table AI.5
Stock of foreign direct investment by economic activity, 2003-06
(S$ million)
2003
Total inward stock
2004
2005
2006
251,652.1
285,876.7
327,044.7
345,873.1
91,717.1
96,923.8
105,339.7
109,124.9
1,409.6
1,129.0
921.9
1,054.2
Wholesale & retail trade, hotels & restaurants
40,091.0
45,995.6
57,429.7
62,194.6
Transport & storage
10,233.2
13,118.1
17,303.3
19,230.9
3,121.6
3,456.0
3,736.8
3,668.7
89,626.7
108,637.9
123,741.0
130,152.7
Real estate, rental & leasing
6,440.3
8,239.8
8,314.0
9,762.2
Professional & technical, administrative & support services
8,860.7
8,225.4
9,945.4
10,320.7
151.9
151.0
312.9
364.2
155,712.60
182,479.1
197,042.1
210,449.4
33,231.00
37,689.1
45,081.9
48,285.3
751.8
978.2
979.6
1,007.2
11,573.40
12,583.0
13,367.8
13,846.7
Transport & storage
6,726.70
6,765.9
9,533.6
10,032.9
Information & communication
7,623.10
9,831.5
10,692.9
12,187.0
85,501.50
100,617.8
100,386.3
108,258.9
7,494.80
7,597.3
8,854.4
8,714.3
913
3,232.8
3,564.6
3,274.9
1,897.30
3,183.5
4,581.0
4,842.0
Manufacturing
Construction
Information & communication
Financial & insurance
Other
Total outward stock
Manufacturing
Construction
Wholesale & retail trade, hotels & restaurants
Financial & insurance
Real estate, rental & leasing
Professional & technical, administrative & support services
Other
Note:
As at year-end.
Source: Data provided by the authorities of Singapore.
Singapore
WT/TPR/S/202
Page 117
Table AII.1
Main trade-related laws in Singapore, September 2007
Laws
Area
Customs Act (Cap. 70 and Amendment 2007)
Customs procedures and requirements
Customs (Duties) Order (Cap. 70 O4)
Customs tariff
Customs (Duties) (Exemption) Order (Cap. 70 O5)
Tariff exemptions
Customs (Valuation) Regulations (Cap. 70 Rg 8 and Amendment 2005)
Customs valuation
Consumer Protection (Fair Trading) Act, 2003 (Cap. 52A and Amendment 2004)
Protection of consumers from unfair trade
practices
Regulation of Imports and Exports Act (Cap. 272A)
Regulation of imports and exports
Strategic Goods (Control) Regulations 2004 (Cap. 300 Rg 1 and Amendment 2006)
Regulation of trade in strategic
goods/technology
Regulation of Imports and Exports (Licensing) Regulations (Cap. 272A Rg 2);
Endangered Species (Import and Export) Act (Cap. 92A and Amendment 2005)
Import licensing
Regulation of Imports and Exports Regulations (Cap. 272A Rg 1 and Amendment 2004)
Import, export, and trans-shipment of
goods; certificates of origin
Arms and Explosives Act (Cap. 13 and Amendment 2007)
Manufacture, use, sale, storage, transport,
importation, exportation and possession of
arms and explosives
Countervailing and Anti-Dumping Duties Act (Cap. 65B and Amendment 2004);
Countervailing and Anti-Dumping Duties Regulations (Cap. 65B Rg 1)
Anti-dumping and countervailing measures
Economic Expansion Incentives (Relief from Income Tax) Act (Cap. 86 and
Amendment 2007); Income Tax Act (Cap. 134 and Amendment 2007)
Tax incentives
Patents Act (Cap. 221 and Amendment 2007); Copyright Act (Cap. 63 and Amendment
2005); Trade Marks Act (Cap. 332 and Amendment 2007); Registered Designs Act
(Cap. 266 and Amendment 2004), Geographical Indications Act (Cap. 117B); Layout
Design of Integrated Circuits Act (Cap. 159A and Amendment 2004)
Intellectual property rights
Standards, Productivity and Innovation Board Act (Cap. 303A and Amendment 2006)
Standards
Commodity Trading Act (Cap. 48A and Amendment 2007)
Commodity trading
Sale of Food Act (Cap. 283); Food Regulations (Cap. 283 Rg 1 and Amendment 2006);
Poisons Act and its Rules (Cap. 234 and Amendment 2005)
Food standards and safety, labelling
Agri-Food and Veterinary Authority Act (Cap. 5 and Amendment 2004); Animals and
Birds Act (Cap. 7); Control of Plants Act (Cap.57A); Endangered Species (Import and
Export) Act 2006; Fisheries Act (Cap. 111); Control of Plants (Phytosanitary
Certification) Rules 2005 (Cap. 57A Ru 6); Control of Plants (Plant Importation) Rules
2005 (Cap. 57A Ru 4); Plant Varieties Protection Act (Cap. 232A and Amendment
2007)
SPS-related
Environmental Pollution Control Act (Cap. 94A and Amendment 2007)
Environmental protection
Weights and Measures Act and Regulations 2005 (Cap. 349 02 and Amendment 2005)
Packaging
Government Procurement Act (Cap. 120 and Amendment 2004)
Government procurement
Public Utilities Act (Cap. 261 and Amendment 2007); Gas Act (Cap. 116A and
Amendment 2007); Electricity Act (Cap. 89A and Amendment 2006)
Public utilities
Competition Act 2004 (Cap. 50B and Amendment 2007)
Competition law
Media Competition Code 2003
Media
Revision of Telecoms Competition Code 2005; Telecommunication Act (Cap.323 and
Amendment 2005)
Telecoms
Banking Act (Cap. 19 and Amendment 2007); Deposit Insurance Act (Cap. 77A and
Amendment 2006); Securities and Futures Act (SFA) (Cap. 289 and Amendment
2005); Trust Companies Act 2006 (Cap. 336 and Amendment 2007); Business Trusts
Act (Cap. 31A and Amendment 2007); Financial Advisors Act (Cap. 110 and
Amendment 2007); Securities and Futures Act (Cap. 289 and Amendment 2007)
Financial services
Broadcasting Act (Cap. 28 and Amendment 2005)
Broadcasting
Postal Services Act (Cap. 237A and Amendment 2007)
Postal services
Free Trade Zones Act (Cap. 114)
Free-trade zones in Singapore
Trade Disputes Act (Cap. 331)
Trade disputes
Source: Government of Singapore.
WT/TPR/S/202
Page 118
Trade Policy Review
Table AII.2
Status of selected notifications to the WTO, January 2004 to January 2008
WTO Agreement
Description of requirement
Periodicity
Document symbol of most recent
notifications and date
Agreement on Implementation of GATT Article VI of the GATT 1994
(Anti-dumping)
Article 18.5
Laws and regulations
Once by March
1995, then changes
G/ADP/N/1/SGP/2/Suppl.1,
13 May 1997
Articles 16.4 and 25.11
Anti-dumping actions taken
Semi-annual
G/ADP/N/105/SGP, 21 August 2003
G/ADP/N/112/Add.1, 13 April 2004
Article 16.5
Notification of domestic procedures
and authorities competent to initiate
and conduct investigations
Once, then changes
G/ADP/N/14/Add.17, 7 October 2003
Agreement on Agriculture
Articles 10 and 18.2
Export subsidies (outlays and
quantities)
Annual
G/AG/N/SGP/17, 24 January 2007
Article 18.2
Domestic support
Annual
G/AG/N/SGP/16, 16 January 2007
Agreement on Import Licensing Procedures
Articles 1.4(a) and
8.2(b)
Laws and regulations relevant to
import licensing
Once, then changes
G/LIC/N/1/SGP/4, 24 September 2004
Article 5.1
Notification of licensing procedures
and changes
Within 60 days of
publication of the
changes
G/LIC/N/1/SGP/4, 24 September 2004
Article 7.3
Questionnaire; rules and information
concerning procedures for the
submission of applications
Annual for
questionnaire; for
rules and
information, once
then changes
G/LIC/N/3/SGP/5, 23 November 2006
General Agreement on Tariffs and Trade (GATT) 1994
Article XXVIII:5
Modification of schedule
Article XVII:4(a) –
Understanding on the
Interpretation of
Article XVII)
Notification of products traded by state
enterprises
G/MA/108, 29 May 2000
Once, then changes
G/STR/N/11/SGP, 5 September 2007
Once, then changes
WT/COMTD/51/Add.6, 16 October 2007
WT/REG140; S/C/N/206/Add.1,
19 September 2007
WT/REG229; S/C/N/394, 21 May 2007
WT/REG228; S/C/N/393, 4 May 2007
WT/REG227; S/C/N/392,4 April 2007
WT/REG215/1, 4 January 2007
WT/REG148/M/3, 27 July 2006
WT/REG215; S/C/N/370,12 July 2006
WT/REG210/2, 3 July 2006
WT/REG229; S/C/N/394,18 May 2006
WT/REG210; S/C/N/363, 24 February 2006
General Agreement on Trade in Services
Article XXIV:7(a) of
GATT 1994 and GATS
Article V
Notification of free-trade agreements
Agreement on Subsidies and Countervailing Measures
Article 32.6
Laws and regulations
Once by March
1995, then changes
G/SCM/N/1/SGP/2/Suppl.1,
13 May 1997
Article 25.11
Countervailing duty actions taken
Semi-annual and
when measure taken
G/SCM/N/98/Add.1, 20 October 2003
Article 25.1
Subsidies programmes
Annual
G/SCM/N/123/SGP/Add.1
28 July 2006
Article 25.12
Notification of domestic procedures
and authorities competent to initiate
and conduct investigations
Once, then changes
G/SCM/N/18/Add.23, 24 April 2007
Table AII.2 (cont'd)
Singapore
WTO Agreement
WT/TPR/S/202
Page 119
Description of requirement
Periodicity
Document symbol of most recent
notifications and date
Agreement on Safeguards
Article 12.6
Laws and regulations
Once by March
1995, then changes
Pre-existing Article XIX
measures
G/SG/N/1/SGP/1, 12 May 1995
G/SG/N/2/SGP; G/SG/N/3/SGP
12 May 1995
Agreement on the Application of Sanitary and Phytosanitary Measures
Article 7, Annex B
Notification of changes in sanitary and
phytosanitary measures
Ad hoc
G/SPS/N/SGP/35, 7 May 2007
Paragraph 3, Annex B
Enquiry point
Once, then changes
G/SPS/ENQ/22, 9 October 2007
Standardizing bodies that have
accepted the code of good practice
Once, then changes
G/TBT/CS/2/Rev.13, 2 March 2007
Agreement on Technical Barriers to Trade (TBT)
Enquiry points
Once, then changes
G/TBT/ENQ/30, 22 June 2007
Article 15.2
Implementation and administration of
the Agreement
Once, then changes
G/TBT/2/Add.25, 29 October 1996
Article 10.6
Information about technical
regulations, standards and conformity
assessment procedures
Ad hoc
G/TBT/N/SGP/3, 16 May 2007
Article 10.7
Agreement reached with another
country
Once, then changes
G/TBT/10.7/N/45, 17 July 2003
Agreement on Textiles and Clothing
Articles 2.8 and 2:11
Notification of programmes of
integration
12 months before
their coming into
effect
G/TMB/N/98/Corr.1, 29 June 1995
Article 6.1
Transitional safeguard measures
Within 60 days of
entry into force of
the WTO
G/TMB/N/98/Corr.1, 29 June 1995
Agreement on Trade-Related Investment Measures
Article 6.2
Publications in which TRIMs may be
found
Once, then changes
G/TRIMS/N/2/Rev.11, 24 September 2003
Article 5.1
Investment measures
Once by March
1995, then changes
G/TRIMS/N/1/SGP/1, 22 October 1996
Agreement on Trade-Related Aspects of Intellectual Property Rights
Protocol amending the
TRIPS Agreement
adopted 6 December
2005
Acceptance of Protocol
Once
WT/Let/594, 28 September 2007and
IP/C/W/490/Rev.1, 19 October 2007
Article 63.2
Laws and regulations
Once, then changes
IP/N/1/SGP/C,G,L,P,T and U
14 March 2000
Article 69
Contact points
Once, then changes
IP/N/3/Rev.7, 19 August 2003
IP/N/3/Rev.6, 1 March 2002
Checklist of issues on enforcement
Once the TRIPS
Agreement comes
into force
IP/N/6/SGP/1, 3 March 2000
Source: WTO Central Registry of Notifications.
WT/TPR/S/202
Page 120
Trade Policy Review
Table AIII.1
GST relief schemes
GST relief scheme
Who is it for
Benefits
Considerations
1. Major Exporter Scheme
(MES)
Businesses with substantial
imports and exports of
goods.
The GST payable at the point
of importation of goods is
suspended.
Subject to the satisfaction of certain
conditions including the requirement
that zero-rated supplies (i.e. export of
goods and international services) must
account for at least 51% of total
supplies.
The MES status is subject to renewal
every three years
2. Zero GST Warehouse
Scheme (ZGS)
Traders of commodities
that are traded repeatedly
before being re-exported.
The GST payable is suspended
when goods are imported into
the ZG Warehouse.
Exporters using Singapore
as a hub.
GST is also suspended for
goods traded within ZG
Warehouse, or transferred from
one ZG Warehouse to another.
Local distributors who
wish to defer GST on
imported goods until they
are released locally.
Service warehouses, which
have customers of the
above categories
3. Approved Third Party
Logistics Company Scheme
(3PL)
4. Approved Contract
Manufacturer and Trader
Scheme (ACMT)
5. Approved Marine Fuel
Trade Scheme (Approved
MFT Scheme)
Goods stored in ZG Warehouse can
only undergo simple processes which
do not alter the original characteristics
of the goods.
Subject to annual licence fees.
Further suspension of GST
when goods are removed from
ZG Warehouse by MES traders
or Approved 3PLCs.
Logistics companies
providing valued-added
activities for overseas
principals using Singapore
as a logistics hub and
supplying inventory to
customers in Singapore.
The GST payable is suspended
at the point of importation of
goods.
GST is also suspended when
goods are removed by MES
traders and other Approved
3PLs.
The Approved 3PL is relieved from
the hassle of having to declare permits
on every movement of goods (unlike
the ZGST Warehouse Scheme) as it is
expected that high standards of
warehousing controls and records on
movements of goods are in place.
Local contract
manufacturers or other
traders who perform valueadded activities (i.e.
treating and processing of
goods) on goods consigned
by overseas clients.
Relieves local contract
manufacturers/traders from
imposing GST on finished
goods delivered locally on
behalf of the overseas clients.
For the ACMT Scheme to operate, all
other parties in the chain of valueadded activities must be GSTregistered and be approved under the
ACMT Scheme.
No GST applicable on the
processing fees charged by the
local contract
manufacturers/traders to
overseas clients.
The ACMT status is subject to
renewal every three years.
Qualifying businesses in
the bunkering industry
holding valid bunkering
licences from the MPA.
No GST is chargeable on the
purchase of approved marine
fuel oil by Approved MFT
businesses
This scheme is only limited to the
bunkering industry.
The Approved MFT status is subject
to renewal every three years.
Source: Ernest and Young (2007), Singapore Budget 2007 Synopsis, p. 43.
Viewed at:
http://www.ey.
com/global/download.nsf/Singapore/Singapore_Budget_2007_Synopsis/$file/Singapore%20Budget%202007%
Synopsis_locked.pdf.
Singapore
WT/TPR/S/202
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Table AIII.2
Import prohibitions by product, 2007
Products
Purpose
Status in 2007
Chewing gum
Public safety
Partially removed, permitting the
use of chewing gum for therapeutic
use, as of January 2004 under the
US-Singapore FTA
Cigarette and table lighters in the shape of a pistol or
revolver
Public safety
Unchanged
Fire-crackers
Public safety
Unchanged
Medicines containing amidopyrine, noramidopyrine,
amygdalin, danthron, pangamic acid and suprofen
Public health
Unchanged
Volcanic rock aggregates not exceeding 40 mm.
Public safety
Removed
Persistent organic pollutants such as Aldrin, Chlordane,
Dieldrin, DDT, Endrin, Heptachlor, Hexachlorobenzene,
Mirex, PCB and Toxaphene
Environment
Changed to include other POPs
controlled under the Stockholm
Convention
Asbestos brake and clutch linings in vehicles registered
after 1 April 1995
Environment
Unchanged
Used motor vehicles more than three years old
To minimize traffic congestion and
pollution
Unchanged
Certain ozone-depleting substances meant for local
distribution/consumption
Halon 1211 and five extinguishers using halon 1211
Halon 1301 and fire protection systems using halon
1301
Halon 2402
Carbon tetrachloride
1, 1, 1 – trichloroethane (methyl chloroform)
CFCs 11, 12, 113, 114, 115 as a refrigerant in new
air-conditioning and refrigeration equipment except
for automotive air-conditioners in vehicles
registered before 1 January 1995 and domestic
refrigerators
Other CFCs
Hydrobromofluorcarbons (HBFCs)
Protecting ozone layer (in
accordance with the Montreal
Protocol on Substances that Deplete
the Ozone Layer)
Unchanged
Commercial import of all endangered species listed under
Appendix I of CITES
Preventing extinction (CITES)a
Unchanged
Cosmetics containing prohibited substances/additives
above the stipulated limits
Public health
Unchanged
Controlled telecommunications equipment such as
scanning receivers, military communication equipment
and automatic call diverters
National security
Unchanged
Asbestos in the form of crocidolite, amosite and
amphiboles and products containing these forms of
asbestos
Environment
Unchanged
Asbestos in the form of chrysotile use as roofing sheets,
refuse chutes, ceiling boards, partition boards, fire
barriers, doors, paints, cement, floor tiles and putty
Environment
Unchanged
Chlorofluorocarbons in aerosol products except medical
aerosols
Environment
Unchanged
Table AIII.2 (cont'd)
WT/TPR/S/202
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a
Trade Policy Review
Products
Purpose
Status in 2007
Hazardous industrial chemicals and pesticides controlled
under the Rotterdam Convention such as Binapacryl,
Captafol, Chlordimeform, Chlorobenzilate, Dinoseb and
dinoseb salts, DNOC and its salts (such as ammonium
salt, potassium salt and sodium salt), 1,2-dibromoethane
(EDB), Ethylene dichloride, Ethylene oxide (for pesticide
use), Fluoroacetamide, HCH (mixed isomers), Lindane,
Mercury compounds including inorganic mercury
compounds, alkyl mercury compounds and alkyloxyalkyl
and aryl mercury compounds for pesticide use,
Pentachlorophenol, 2,4,5-T, Dustable powder
formulations containing a combination of pesticides:
benomyl at or above 7%, carbofuran at above 10%, thiram
at or above 15%, Methamidophos (Soluble liquid
formulations of the substance that exceed 600 g active
ingredient/l), Methyl-parathion (emulsifiable concentrates
(EC) with 19.5%, 40%, 50%, 60% active ingredient and
dusts containing 1.5%, 2% and 3% active ingredient),
Monocrotophos (all formulations), Parathion (all
formulations - aerosols, dustable powder (DP),
emulsifiable concentrate (EC), granules (GR) and
wettable powders (WP) - of this substance are included,
except capsule suspensions (CS)), Phosphamidon (Soluble
liquid formulations of the substance that exceed 1,000 g
active ingredient/l), PBB, PCT, Tris (2,3-dibromopropyl)
phosphate, Tetraethyl lead, Tetramethyl lead and
Parathion
Environment
Added to include other hazardous
industrial chemicals and pesticides
controlled under the Rotterdam
Convention
Plants of rubber, cocoa, coconut and oil palm from
Central and South America and West and Central Africa
To ensure plant health
Unchanged
The Endangered Species (Import and Export) Act 2006 was amended with enhanced enforcement powers and higher penalties
for smuggling endangered species.
Source: Singapore authorities.
Singapore
WT/TPR/S/202
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Table AIII.3
Import prohibitions and restrictions by country
Name of amendment law or regulations
Date in force
Brief description of key amendments/regulatory
developments
S266/2007 - Regulation of Imports and
Exports (Amendment No. 2) Regulations 2007
15 June 2007
Came into operation to prohibit the importation from Iran, arms
and related materials, pursuant to UNSC Resolution 1747
(2007).
S54/2007 - Regulation of Imports and Exports
(Amendment) Regulations 2007
9 February 2007
Came into operation on to implement certain prohibitions
pursuant to UNSC Resolution 1737 (2006) on Iran. The
Regulations prohibit the importation from Iran, exportation and
bringing in transit of goods and related technology to Iran
which could contribute to Iran's enrichment-related,
reprocessing or heavy water-related activities or to the
development of nuclear weapon delivery systems.
S706/2006 - Regulation of Imports and
Exports (Amendment No. 4) Regulations 2006
1 January 2007
Came into operation on to implement certain prohibitions
pursuant to UNSC Resolution 1718 (2006) on the Democratic
Peoples' Republic of Korea (DPRK). The Regulations prohibit
the importation from (DPRK), exportation and bringing in
transit of goods to the DPRK:
(a) battle tanks, armored combat vehicles, large calibre
artillery systems, combat aircraft, attack helicopters,
warships, missile or missile systems;
(b) any related materials of the above items;
(c) any item, material, equipment, goods and technology
related to nuclear programmes, ballistic missile
programmes and other weapons of mass destruction
programmes.
Source: Singapore Customs.
WT/TPR/S/202
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Trade Policy Review
Table AIII.4
Products covered by automatic and non-automatic import licensing, status November 2006,
Product
Laws and regulations authorizing import
licensing
Controlling agency
Automatic import licensing
Fresh fruits, vegetables, plants and plant
products (other than those from the
American Tropics)
Control of Plants Act
Fish and fish products (except oysters,
frozen cooked crabmeat, frozen cooked
prawn meat and frozen blood cockle meat)
Wholesome Meat and Fish Act
Animal feed, milk powder – skimmed
(coloured for animal feed)
Animal and Birds Act and Feeding Stuffs
Act
Veterinary medicaments
Medicines Act
Tobacco products and related
advertisements
Smoking (Control of Advertisements and
Sale of Tobacco) Act and its Regulations
Films, video tapes and video discs
Films Act and its Regulations
Publications, gramophone records,
paintings and prints
Undesirable Publications Act
Mastering equipment and replication
equipment for any of the following:
- CD (compact disc);
- CD-ROM (compact disc-read only
memory)
- VCD (video compact disc);
- DVD (digital video disc); and
- DVD-ROM (digital video disc-read
only memory)
Regulation of Imports and Exports
Regulations
Singapore Customs
Biological agents that are capable of
causing death, disease or other biological
malfunction in a human
Certain microbial toxins
Biological Agents and Toxins Act
Biosafety Branch, Ministry of Health
Artificial sweetening agents, food
containing artificial sweetening agent(s),
and irradiated food
Food Regulations
AVA, Ministry of National Development
(MND)
Specific plants, plant products and other
materials (insects, micro-organisms and
soil)
Control of Plants (Plant Importation) Rules
Endangered species of wild fauna and
flora (CITES products)
Endangered Species (Import and Export)
Act
Fruit or jackpot machines
Regulation of Imports and Exports
Regulations
Arms, explosives and explosive
precursors, swords, daggers, bayonets,
spears, spearheads, nitro-cellulose
Arms and Explosives Act
Handcuffs
Regulation of Imports and Exports
Regulations
Agri-Food and Veterinary Authority
(AVA), Ministry of National
Development (MND)
Health Sciences Authority (HSA)
Media Development Authority, Ministry
of Information, Communication and the
Arts (MICA)
Non-automatic import licensing
Articles of clothing intended as protection
against attack, including bullet-proof vests
Licensing Division, Singapore Police
Force, Ministry of Home Affairs
Steel helmets
Toy guns, including pistols and revolvers
Amusement machines, coin- or discoperated, including pintables, shooting
galleries, and cinematography machines
Table AIII.4 (cont'd)
Singapore
Product
WT/TPR/S/202
Page 125
Laws and regulations authorizing import
licensing
Controlling agency
Hazardous substances
Environmental Pollution Control Act and
Environmental Pollution Control
(Hazardous Substances) Regulations
Ozone-depleting substances (ODS) and
products containing ODS such as the
following:
- fire extinguishers and fire protection
systems using halon;
- air-conditioning and refrigeration
equipment using
Chlorofluorocarbons (CFCs);
- vehicles with air-conditioners
containing CFCs.
Environment Pollution Control Act and
Environment Pollution Control (Ozone
Depleting Substances) Regulations 2000
Petroleum and flammable materials
Fire Safety Act and Fire Safety (Petroleum
and Flammable Materials) Regulation
Singapore Civil Defence Force, MHA
Radioactive materials and irradiating
apparatus
Radiation Protection Act and its Regulations
Centre for Radiation Protection, Health
Sciences Authority (HSA)
Medicines
Centre for Pharmaceutical Administration,
HSA
Category 1 cosmetic products
Medicines Act and related regulations and
orders for medicines, Chinese proprietary
medicines and Category 1 cosmetic
products
Poisons/drugs
Poisons Act and the Misuse of Drugs Act
Controlled telecommunication equipment
Telecommunications (Dealer's) Regulations
Infocomm Development Authority (IDA)
Scheduled chemicals under the Chemical
Weapons Convention (CWC)
Chemical Weapons (Prohibition) Act
National Authority (CWC)
Rice
Price Control (Rice) Order
International Enterprise Singapore (IE
Singapore)
Poppy seeds (kaskas)
Regulation of Imports and Exports
Regulations
Central Narcotics Bureau, MHA
Controlled equipment, materials or
substances used for the manufacturing of
controlled drugs
Misuse of Drugs Regulations
Merchandise/products containing a
photograph, drawing or design resembling
or used in/on Singapore currency notes
and coins
Currency Act
Monetary Authority of Singapore (MAS),
Ministry of Finance
Rough diamonds
Regulation of Imports and Exports
(Kimberley Process) Regulations
Singapore Customs
Chinese proprietary medicines
Pollution Control Department, National
Environment Agency (NEA)
Source: Singapore authorities; and WTO document G/LIC/N/3/SGP/5, 23 November 2006.
WT/TPR/S/202
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Trade Policy Review
Table AIII.5
Legislation in the area of SPS regulations and labelling, since 2004
Name of legislation
Date of amendment
Description
Food Regulations
1 September 2006
The Food Regulations was amended to remove the Certificate of Age
(COA) requirement for brandies and whiskies on 1 September 2006.
Importers of brandies are not required to show certificate of age to prove
that their products are authentic. Changes facilitate the trade particularly
for importers who obtain their products from third parties and have
difficulties to get the certificate of age.
Control of Plants
(Phytosanitary Certification)
Rules
1 June 2005
The Control of Plants (Phytosanitary Certification) Rules was amended to
accommodate the new International standard for the inspection and
certification work that defined by IPPC under ISPM 12.
Rules provide for accreditation of exporters and self-regulation of export
health standard.
Control of Plants (Plant
Importation) Rules
25 April 2005
The Control of Plants (Plant Importation) Rules was amended to provide for
the use of import risk analysis as the means of developing import health
standards for the import of various commodities and living organisms.
The Rules also apply consistent phytosanitary import measures world-wide
by removing the existing exemption given to import of plants and plant
products from Peninsular Malaysia. Include plants that have acquired novel
genetic material by the techniques of modern biotechnology to be
controlled.
This enables AVA to take control measures should there be any outbreak of
pests and diseases in the Malaysia and allow updating requirements based
on science. Control invasive species as well as GM plants.
Control of Plants (Registration
of Pesticides) Rules
1 July 2004
The Control of Plants (Registration of Pesticides) Rules was amended to
update registration requirements by prohibiting the distribution of
unregistered pesticide and the use of pesticide registration mark stickers as
they may subject to fraud. The provisions relating to AVA's obligations
under the USSFTA were also included in the Rules.
Endangered Species (Import
and Export) Act 2006
1 March 2006
The Endangered Species (Import and Export) Act 2006 was amended with
enhanced enforcement powers and higher penalties for smuggling
endangered species.
Fisheries (Fishing Vessels)
Rules
1 December 2004
The Fisheries (Fishing Vessels) Rules was amended to enable the fishing
boat owners to self-regulate the sea worthiness of the fishing vessels. AVA
will licence the fishing vessels for its fitness for intended use, i.e. fishing.
Animals and Birds (Care and
Use of Animals for Scientific
Purposes) Rules
15 November 2004
The Animals and Birds (Care and Use of Animals for Scientific Purposes)
Rules was introduced to regulate the keeping and treatment of animals used
for animal experimentation and research, based on the guidelines set by
National Advisory Committee for Laboratory Animal Research
(NACLAR). This legislation would allow AVA to license the research
facilities in Singapore in order to ensure an acceptable standard on the care
and use of animals in such facilities.
Weights and Measures Act and
Regulations 2005
1 January 2006
(i) Introduces Authorised Verifier (AV) Scheme, which permits designated
private sector bodies by SPRING Singapore to handle verification of
weighing and measuring instruments for trade use.
(ii) Deregulates mandatory licensing for manufacturers and repairers of
weighing and measuring instruments with introduction of AV Scheme.
(iii) Introduces Average Quantity System (AQS) for pre-packaged goods in
accordance with international standards (OIML Recommendation).
(iv) Introduces accuracy label on all verified weighing and measuring
instruments for trade use.
Source: Data supplied by authorities from SPRING Singapore (Standards, Productivity and Innovation Board), Agri-food
and Veterinary Authority.
Singapore
WT/TPR/S/202
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Table AIII.6
Exports subject to controls, September 2007
Products
Competent authority
Animals
Agri-Food and Veterinary Authority (AVA)
Arms and explosives, articles of clothing intended as protection
against attack, including bullet-proof vests
Arms and Explosives Licensing Division (A&E), Singapore
Customs
Explosive Precursors
A&E
Chemicals
(a) Toxic and precursers
(b) Pesticides
National Authority (Chemicals Weapons Convention) (NA CWC)
Pollution control department (PCD)
Chlorofluorocarbons (CFCs)
Pollution control department (PCD)
Rough diamonds
Singapore Customs
Strategic Goods
Singapore Customs
Fish and fish products (including fin fish, crustaceans and
molluscs)
Agri-Food and Veterinary Authority (AVA)
Handcuffs
A&E
Halons
Pollution control department (PCD)
Steel helmets
A&E
Irradiating apparatus
Centre for Radiation Protection (CRP)
Meat and meat products
Agri-Food and Veterinary Authority (AVA)
Military equipment
Singapore Customs
Precurser chemicals
Central Narcotics Bureau (CNB)
Radioactive materials
Centre for Radiation Protection (CRP)
Rice (excluding rice bran)
IE Singapore
Rubber
IE Singapore
Singapore made textiles, garments and textile exports for export
to Canada, the EU or the United States
Singapore Customs
CITES Specimens
Agri-Food and Veterinary Authority (AVA)
Toy guns, pistols and revolvers
A&E
Waste lead-acid batteries and waste batteries made with lead,
cadmium or mercury
Pollution control department (PCD)
Note:
Exports of, inter alia, military equipment are prohibited to Afghanistan, Cote d'Ivoire, D.R. Congo, Iraq, Liberia, Rwanda,
Sierra Leone, Somalia, Sudan, DPR Korea, and Iran.
Source: Singapore Customs online information. Viewed at: http://www.tradexchange.gov.sg/txwebp/pfk/PfkMainServlet?
pContents=/forward.jsp [25 September 2007].
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Trade Policy Review
Table AIII.7
Tax incentives
Type
Application
to:
Pioneer Enterprise
EDB
Approved Royalties
Incentive (ARI)
EDB
Approved Foreign Loan
(AFL) Incentive
EDB
Development and
Expansion Incentive
EDB
Investment Allowance
EDB
Requirement
Incentives
Relief period
The project introduces technology,
know-how or skills into an industry
which is substantially more
advanced than that of the average
level prevailing in that industry.
Most projects can be considered
unless products are already
manufactured locally without tax
incentives.
(i) For the transfer of technology or
know-how and covers royalty
payments, technical assistance
fees and contributions to R&D
costs.
(ii) A company granted ARI will be
exempted either partially or fully
the withholding tax liability of
10% or reduced DTA rate, on the
royalty payments paid to the
overseas recipient.
(i) Loan must be of a minimum
amount of S$200,000 and the
credit facilities are granted for
the purchase of productive
equipment; and
(ii) Lender is a non-resident person
and the relief from Singapore tax
will not increase his liability in
his country of residence.
Approved companies engaged in:
(i) manufacturing or increased
manufacturing of any product
that would be of economic
benefit to Singapore; or
(ii) same qualifying activities as
pioneer service companies.
(i) Companies engaged in approved
qualifying activities which
include:
(a) manufacturing and
specialized engineering or
technical services activities;
(b) research and development
activities;
(c) construction operations;
(d) projects for reducing
consumption of water;
(e) qualifying activities same as
those of pioneer services
companies;
(f) projects for promotion of
tourist industry (other than a
hotel) in Singapore; and
(g) satellite operations.
Tax exemption on
qualifying profits
Up to 15 years
depending on the merits
of the project e.g. type
of product, investment
level, skills, gestation
period, technology, etc.
Full or partial exemption
on withholding tax on
royalty payments to
non-residents
For the duration of the
agreement
Full or partial exemption
on withholding tax on
interest payments to
non-residents
Indefinite until the loan
is repaid
Tax rate as low as 5%
Up to 10 years with
provision for
extensions up to a
maximum total relief
period of 20 years
Tax exemption on
chargeable income equal to
approved percentage not
exceeding 100% of the
capital expenditure
incurred on:
(a) plant and machinery;
(b) factory building;
(c) acquisition of knowhow or patent rights;
(d) efficient water
recycling plant; and
(e) satellite
Indefinite until
allowance is used up
Table AIII.7 (cont'd)
Singapore
Type
WT/TPR/S/202
Page 129
Application
to:
Investment Allowance
for Flagship Concepts
STB
Pioneer Service
Companies
EDB
Headquarters (HQ)
Programme
- Regional
Headquarters (RHQ)
Award
EDB
Requirement
Incentives
Relief period
(ii) Investment must be made within
the stipulated qualifying period,
which should not exceed
five years from investment day
[or 10 years from investment
day for item (f)].
(iii) There is no minimum
investment requirement.
(iv) The asset for which the
incentive has been granted
cannot be disposed of within the
qualifying period and two years
thereafter, without the approval
of the Minister.
Investments in flagship concept
projects in retail, food & beverage
and entertainment.
Withholding tax
exemption on lease
payment to non-resident
satellite owners
Up to 10 July 2012
Tax exemption on
chargeable income equal to
30% of the capital
expenditure incurred on:
(a) specialized or high-tech
equipment;
(b) leasehold improvement
items
Tax exemption on
qualifying profits
For projects approved
from 1 April 2005 to
31 March 2010
15% tax on incremental
qualifying income
3 years with provision
for extension for an
additional 2 years
Companies engaged in qualifying
activities which include:
(i) any engineering or technical
services including laboratory,
consultancy and research and
development activities;
(ii) computer-based information and
other computer related services;
(iii) the development or production
of any industrial design; and
(iv) such other services or activities
as may be prescribed.
(i) Well-established company
undertaking substantial level of
headquarters activities in
Singapore, and
(a) it is the nerve centre in terms
of organization reporting
structure at senior
management levels, and has
clear-cut management and
control over its principal
activities;
(b) its personnel for the
headquarters operations
(including management,
professionals technical
personnel and supporting
staff) are based in Singapore.
(ii)The company must:
(a) increase its paid-up capital to
at least S$0.2 million and
S$0.5 million at the end of
year 1 and year 3 of the
incentive period,
respectively;
Up to 15 years
Table AIII.7 (cont'd)
WT/TPR/S/202
Page 130
Type
Trade Policy Review
Application
to:
Requirement
(b) perform a minimum of
3 qualifying headquarters
services to network entities in
3 countries outside Singapore
by the end of year 1 of the
incentive period;
(c) employ at least 75% skilled
workers throughout the
incentive period;
(d) employ at least 10
additional* professionals
based in Singapore;
(e) incur an average
remuneration per worker of
S$100,000 per annum for the
top 5 executive designation
by the end of year 3 of the
incentive period;
(f) incur at least an additional*
$2 million in annual business
spending in Singapore; and
(g) incur at least an additional**
S$3 million in business
spending cumulatively for the
entire incentive period.
* The level at Year 3 – Year 0
** (Total for Years 1 to 3) –
(3 x Year 0)
Companies that commit to
substantially exceed the minimum
criteria for the RHQ Award.
- International
Headquarters (IHQ)
Award
Approved International
Shipping (AIS)
Enterprise
MPA
International shipping companies
(Singapore resident) with substantial
operations and have concrete
business plans to expand their
operations in Singapore.
Proceeds from sale of
vessels
MPA
AIS companies or Singapore
Registered vessels
Foreign exchange and
derivative gains
MPA
AIS companies or Singapore
Registered vessels
Approved Shipping
Logistics Scheme
MPA
Ship management companies, ship
agencies and shipping related
international freight forwarders and
logistics operators that have concrete
business plans to embark on an
expansionary programme from
Singapore.
Incentives
Relief period
0%, 5% or 10% tax on
qualifying income. (Tax
rates customized based on
commitment level and
considered in discussion
with EDB.)
Tax exemption on:
(a) qualifying shipping
income;
(b) dividends from
approved subsidiaries
and associated
shipping companies
Tax certainty that proceeds
from sale of vessels are
treated as capital gains and
hence not subjected to tax
Foreign exchange and
derivative gains of
Singapore-flagged vessels
and AIS companies will be
automatically regarded as
shipping-related hedging
gains and hence qualify for
tax exemption
Tax rate of 10% on
incremental qualifying
income
Tax exemption on
dividend income received
from approved network of
companies
5 to 20 years
10 years with
possibility to apply for
extension for 10 year
incentive periods up to
a maximum total of
30 years
5 years (YA 2005 to
YA 2009)
5 years (YA 2006 to
YA 2010)
5 years with possibility
for renewal for another
5 years if qualifying
criteria are met
Table AIII.7 (cont'd)
Singapore
WT/TPR/S/202
Page 131
Type
Application
to:
Singapore Registry of
Ships
Requirement
Incentives
Relief period
MPAa
Vessels qualified for registration
with the Singapore Registry of
Ships.
Indefinite, for as long
vessel remains as a
Singapore registered
vessel
Freight Uplift
MPAa
Mega Tourism Events
Incentive
STB
10% tax on income
derived from approved
mega tourism events
For tourism events
approved from
1 April 2005 to
31 March 2010
Global Trader
Programme (GTP)
IES
Shipowners and charterers deriving
income from uplift of freight from
Singapore, excluding carriage
arising solely from transhipment
from Singapore.
Event companies organizing or
staging world-class events and
activities that are of world-class
production standards, strong brand
equity and international stature.
(i) Companies carrying on the
business of international trading
of commodities, which:
(a) are established with
worldwide network and good
track record;
(b) have a significant amount of
directly attributable total
business spending in
Singapore per annum and
conducts a substantial
volume of physical trade;
(c) employ a commensurate
number of international
traders in Singapore;
(d) contribute to manpower
training and development of
trading expertise in
Singapore;
(e) make significant use of
Singapore's banking,
financial and other business
services; and
(f) support and make use of
Singapore's trade
infrastructure.
(ii) High-growth, medium-sized
trading companies (w.e.f.
28 February 2003).
Approved art and antiques dealers
transacting on behalf of nonresidents.
Qualifying company must:
(i) be a well-established company
incorporated in Singapore;
(ii) use the Internet to conduct its
international trading and
marketing activities;
(iii) host its website and contents in
Singapore;
(iv) engage specified number of
personnel to be based in
Singapore; and
(v) other commitments or criteria
specified by IES.
Tax exemption on
qualifying shipping
income derived from
Singapore registered
vessels
Tax exemption on income
from uplift of freight from
Singapore
5% (w.e.f.
28 February 2003) or 10%
tax on qualifying income,
depending on company's
turnover and spending
5 years with provision
for extension
10% tax on qualifying
income
3 years
10% tax on qualifying
income
5 years with provision
for extension
10% tax on qualifying
income on qualifying
products
5 years
Approved Art and
Antiques Dealers
IES
Approved Cyber Trader
(ACT)
IES
Indefinite
10% concessionary
withholding tax on
approved royalties
Investment allowance of
up to 50% of cost of
qualifying new fixed
capital expenditure
Table AIII.7 (cont'd)
WT/TPR/S/202
Page 132
Type
Enterprise Investment
Incentive (EEI)
[formerly known as the
Technopreneur
Investment Incentive
(TII)]
Trade Policy Review
Application
to:
EDB/
SPRING
Approved Investment
Companies
MOF
Approved Holding
Company (AHC)
EDB
Asset Securitization
MAS
Requirement
Incentives
Relief period
(i) Company primarily engaged in
innovative and high growth
activities with substantial
development contents in relation
to specific product, process or
service.
(ii) Company must:
(a) be an unlisted company in
initial years;
(b) have paid-up capital of at
least S$10,000;
(c) be incorporated in Singapore;
and
(d) conduct qualifying start-up
activities wholly or mainly in
Singapore.
(iii) The investments must be:
(a) in the form of new ordinary
shares (not replacement
capital or debt instruments)
issued and acquired by the
investor (individual or
corporate) during the startup's approved status;
(b) without any condition that
would eliminate the investor's
risk; and
(c) at least S$1,000 per
investment.
(iv) Overseas start-ups may be
approved on a case-by-case
basis provided that there is a
significant link for Singapore to
enjoy the economic spin-offs
from their activities.
Companies whose business is to
invest in securities and the principal
part of their income is derived
therefrom.
Approved holding company must
own at least 50% of the ordinary
shares in approved subsidiary
companies for a minimum period of
18 months continuously:
(i) immediately prior to the date of
disposal of shares; and
(ii) from the date the company is
granted approved holding
company status to the date of
disposal of shares.
Approved Special Purpose Vehicles
(ASPVs) based in Singapore for
asset securitization set up on or after
27 February 2004.
Deduction for losses
incurred on disposal of
qualifying shares /
liquidation of the start-up
company
Up to 5 years
As above, but confined to
Singaporean/permanent
resident investors
Proportion of gains subject
to tax based on holding
period of investments
Indefinite
Gains from sale of shares
in approved subsidiary
companies will be treated
as capital gains and not
subject to tax
5 years with window
approval period from
17 February 2006 to
16 February 2011
Tax exemption for income
derived from asset
securitization
arrangements. Tax
concessions for
withholding tax, stamp
duty and GST concession
for qualifying transactions
Transactions entered
into between
27 February 2004 and
31 December 2008
Table AIII.7 (cont'd)
Singapore
Type
WT/TPR/S/202
Page 133
Application
to:
Requirement
Incentives
Relief period
10% tax on qualifying
income derived by
Approved Ship Investment
Managers
Tax exemption for
qualifying income from
ship leasing activities
derived by Approved Ship
Investment Enterprises
Fund and qualifying
investors will be tax
exempted on their
qualifying fund income
Non-resident funds, if
non-qualifying, may be
eligible for the tax
exemption during the first
12 months after their
constitution of the fund if
it is managed by a
qualifying start-up fund
manager
Tax exemption for:
(a) gains on disposal of
securities;
(b) overseas interest
income (if remitted);
and
(c) overseas dividend
income (if remitted)
Specified income derived
by a qualifying unit trust
will not form part of its
statutory income
Tax exemption for
specified income that
would have not been
taxable if received directly
by any individual
Tax exemption on
specified income from
designated investments
received by the foreign
trust and Trustee
companies under the
Approved Trustee Scheme
will be granted a tax
concession on qualifying
fee income
Tax exemption on
specified income from
designated investments
made by the trusts or its
eligible holding companies
10 years, with window
application period from
1 March 2006 to
28 February 2011
Maritime Finance
Incentive
MPA
Entities that have concrete business
plans to use Singapore to develop
their ship financing activities.
Fund Management
MAS
Qualifying funds (resident or nonresident) must be managed and
advised by a fund manager that is
based in Singapore.
CPF Approved Unit
Trust
MOF
A unit trust, which is resident in
Singapore.
Designated Unit Trust
IRAS
A qualifying unit trust that is
managed by an investment or fund
manager in Singapore.
Locally Administered
Trust (i.e. Domestic
Trust)
MAS
Qualifying local trusts and eligible
underlying holding companies that
are administered by a trustee
company in Singapore.
Foreign Trust
MASa
Qualifying foreign trusts and eligible
investment holding companies,
which are administered by trustee
companies in Singapore.
Foreign Charitable
Purpose Trusts
MASa
Qualifying charitable purpose trusts
that are created for prescribed
purposes.
Not applicable for
non-resident funds
Indefinite for resident
funds, with approval
period from
17 February 2006 to
16 February 2011
Start-up fund manager
must be approved from
the period
18 February 2005 to
17 February 2010
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Table AIII.7 (cont'd)
WT/TPR/S/202
Page 134
Type
Trade Policy Review
Application
to:
Approved Venture
Company
EDB
Overseas Enterprise
Incentive (OEl)
IES
Financial Sector
Incentive (FSI) Scheme
A) Standard-tier (ST)
Awards and EnhancedTier (ET) Awards
Securities Borrowing
and Lending (SBL)
MAS
MAS
Requirement
Incentives
Relief period
Venture capital funds or venture
capital fund management companies
must:
(i) be incorporated and based in
Singapore;
(ii) have obtained the necessary
approvals and licences from the
MAS for their proposed
activities;
(iii) commit to invest a certain
percentage of its subscribed
funds in Singapore and seedstage and/or restart projects in
Singapore; and
(iv) commit to employ a certain
number of local venture capital
professionals to manage the
approved venture capital fund.
(i) Companies which invest in
approved overseas investments
and projects.
(ii) Investor companies must be:
(a) Incorporated and resident in
Singapore for tax purposes;
and
(b) at least 50% owned by
Singapore citizens or
permanent residents of
Singapore.
Tax exemption on:
(a) gains from disposal of
approved local and
overseas investments;
(b) dividends from
approved overseas
investments; and
(c) interest income from
convertible loan stocks
Tax rate of not more than
10% during extension
period
Up to 10 years with
provision for extension
Tax exemption on:
(a) dividends from
qualifying overseas
investments;
(b) Royalties from
qualifying overseas
projects;
(c) Interest income on
shareholder loans to
approved overseas
projects;
(d) Incremental income
from the provision of
support services
within or outside of
Singapore; and
(e) Overseas project
income from other
approved qualifying
activities
Tax concessions on
income derived from FSIST (subject to a qualifying
base, which will be taxed
at the prevailing corporate
tax rates) and FSI-ET
qualifying activities
Up to 10 years
10% tax on income from:
(a) loan of all securities
except unlisted
Singapore shares; and
(b) arranging the loan of
any securities except
unlisted Singapore
shares
From 18 February 2005
to 31 December 2008
Companies carrying out the
prescribed qualifying activities in
the debt capital market, equity
capital market, treasury, fund
management and headquarter
services will be eligible if they meet
certain headcount, expertise and
business spending requirements.
Qualitative factors will also be
considered.
The company must be:
(i) an FSI company; or
(ii) a company registered with MAS.
Not more than 10 years,
with approval period
from 1 January 2004 to
31 December 2008
Table AIII.7 (cont'd)
Singapore
Type
WT/TPR/S/202
Page 135
Application
to:
Requirement
Incentives
Relief period
10% tax on income
derived from transactions
in gold bullion,
commodity, petroleum
financial futures and
qualifying derivatives in
any approved market with
or derived from any
foreign exchange with
qualifying persons
10% tax on income
derived from transactions
in specified commodity
futures contracts
5% concessionary tax rate
on income from:
(i) qualifying transactions
in commodity
derivatives or
commodities in any
currency with
qualifying
counterparties; and
(ii) income derived from
qualifying exchangetraded commodities
derivatives (w.e.f.
18 February 2005).
5% tax on qualifying
income derived from the
provision of over-thecounter derivatives
clearing services using a
Singapore clearing house.
Tax concession on income
from the provision of
qualifying services.
Withholding tax
exemption on interest from
loans from outside
Singapore.
10% tax on qualifying
income derived from
carrying on an offshore
insurance business
Specifically, the tax
concession will be
extended to qualifying
income from writing
offshore and onshore
marine hull and liabilities
risks
Tax deduction on special
reserves set aside for
certain offshore risks
(w.e.f. YA 2003)
Tax exemption on
specified income from
qualifying activities
Indefinite
Futures Members of the
Singapore Exchange
(SGX)
MAS
Company that is a futures member
of the Singapore Exchange (SGX)
transacting with qualifying persons.
Offshore Commodity
Futures Trading
MAS
Commodities
Derivatives Market
Incentive
MAS/IES
Company must be a member of a
prescribed Commodity Futures
Exchange and transacting with
qualifying persons.
Qualifying financial institutions and
companies.
Clearing member of
Singapore Clearing
House
MAS
Qualifying clearing members of a
Singapore clearing house.
Finance and Treasury
Centre (FTC)
EDB
Companies which provide
prescribed finance and treasury
services to related and associated
companies outside Singapore and in
Singapore (subject to a stipulated
revenue ratio).
Insurance
MAS
Qualifying insurance companies
which engage in the business of
insuring and reinsuring offshore
risks.
Qualifying captive insurer.
Indefinite
Up to 5 years beginning
from on or before
26 February 2006.
Approval period up to
26 February 2009
Approval period valid
from 17 February 2006
to 16 February 2011
5 to 10 years with
provision for extension
Indefinite
Tenure of concession
up to 10 years
Approval period from
2 July 2002 to
1 July 2012. Tenure of
concession is up to
10 years
10 years, with
qualifying window
approval period from
17 February 2006 to
16 February 2011
Table AIII.7 (cont'd)
WT/TPR/S/202
Page 136
Trade Policy Review
Type
Application
to:
Offshore Leasing
a
Approved Aircraft
Leasing
EDB
Provision of high-value
added processing
services supporting
financial activities
Bond Market Incentives
MAS
Islamic Bonds
MAS
a
Requirement
Incentives
Relief period
Companies which engage in
offshore leasing of machinery or
plant.
Company must:
(i) be a reputable international
aircraft operating lessor, which
uses Singapore as an operating
base;
(ii) have annual total business
spending in Singapore of at least
S$4 million by the second year
of operation and S$10 million
by the fifth year; and
(iii) employ at least three
experienced marketing and
technical staff.
Approved companies that provide
prescribed processing services to
financial institutions or another
approved company.
(i) Singapore Government
Securities Income derived by
primary dealers from trading in
Singapore Government
Securities.
(ii) Qualifying debt securities
10% tax on qualifying
leasing income
Indefinite
10% tax on qualifying
income
Tax exemption on interest
payment for foreign loans
taken up during relief
period
Depreciation period of
aircraft extended to
20 years during relief
period
5 years with provision
for extension
The Islamic bond must be a
qualifying debt security is in
compliance with Shariah principles
and issued during the period from
1 January 2005 to
31 December 2008.
Tax concession on income
derived from the provision
of prescribed processing
services
Tax exemption on trading
income derived by primary
dealers
10% concessionary tax on
interest and discount
income for resident
persons
Withholding tax
exemption on interest and
discount income for nonresidents
Tax exemption for
discount and interest
income for resident
individuals
Same incentives as listed
under bond market
incentives relating to
qualifying debt securities
9 years up to
27 February 2008
In respect of qualifying
debt securities issued
within a 10-year period
up to
31 December 2008
For payouts derived
from Islamic bonds on
or after 1 January 2005
till 31 December 2008
a
No application required – Incentive to be claimed upon submission of tax return/annual declaration to the Inland Revenue
Authority of Singapore.
Note:
EDB - Singapore Economic Development Board; IES - International Enterprise Singapore; MAS - Monetary Authority of
Singapore; MOF - Ministry of Finance; MPA - Maritime and Port Authority of Singapore; SPRING - Standards, Productivity
and Innovation Board; STB - Singapore Tourism Board.
Source: Singapore authorities.
Singapore
WT/TPR/S/202
Page 137
Table AIII.8
Non-tax assistance for industrial development (administered by EDB and SPRING)
Scheme
Eligibility
Assistance
Innovation Development
Scheme
Singapore-registered businesses
and organizations
Grants support for qualifying costs incurred in the innovation of
products, processes and applications and developing depth in
innovation capabilities
Initiatives in New
Technologies
Singapore-registered businesses
and organizations
Grants support for qualifying costs incurred in manpower
development in the application of new technologies, industrial
R&D and professional know-how
Research Incentive Scheme
for Companies
Singapore-registered businesses
and organizations
Grants support for qualifying costs incurred in the development of
R&D capabilities in the areas of strategic technologies
Local Industry Upgrading
Program
Singapore-registered businesses
and organizations
Assistance in defraying manpower costs incurred in providing
expertise to local suppliers looking to upgrade their capabilities and
service standards to meet international sourcing requirements and
standards
Locally based Enterprise
Advancement Program
Singapore-registered businesses
and organizations
Assistance in defraying manpower costs incurred in providing
expertise to local suppliers looking to expand their market channels
Patent Application Fund Plus
Singapore-registered businesses
and organizations
Grants support for patent application cost in order to promote
pervasive innovation and encourage greater commercialization
activities
Regionalisation Training
Scheme
Singapore-registered businesses
and organizations
Fixed grant support to assist Singapore companies in the training of
foreign workers for their overseas operations
Technology for Enterprise
Capability Upgrading
Local enterprises with fixed
productive assets of not more
than S$15 million; if in the
services sector, with less than
200 employees
Assistance in defraying manpower costs incurred by local
enterprises in the engagement of research scientists and engineers
from public sector research institutes for R&D or innovation
projects
Resource Productivity
Scheme
Singapore-registered businesses
and organizations
Fixed rate loans to partially finance equipment cost incurred in
systems that enhance the utilization of scare resources such as
labour, water and land
Capital Assistance Scheme
Qualifying machinery and
equipment used by small and
medium-sized firms in
mechanization and automation
with a quality above the
industry norm.
Preferential interest rate on qualifying loan amount
Regionalization Finance
Scheme
Local enterprises with fixed
productive assets of not more
than S$30 million; if in the
services sector, with less than
200 employees
Fixed interest financing to assist local enterprises to set up
operations overseas
To be eligible, a company must
satisfy the following conditions:
- At least 30% local equity
- Fixed assets (defined as net
book value of factory building,
machinery and equipment) not
exceeding S$15 milliona
- Employment size not
exceeding 200 workers for nonmanufacturing companiesa
A fixed interest rate financing programme designed to encourage
and assist local enterprises to upgrade, strengthen and expand their
operations
Economic Development
Board (EDB)
Standards, Productivity
and Innovation Board
(SPRING)
Local Enterprise Finance
Scheme (LEFS)
Loan facilities
- Factory term loan
- Machinery term loan
- Machinery hire purchase loan
- Working capital loan
- Factoring loans
Interest rates: fixed for duration of the loan and computed on
monthly-rest, in-arrears basis
Table AIII.8 (cont'd)
WT/TPR/S/202
Page 138
Scheme
Micro Loan Programme
(available under LEFS)
Loan Insurance Scheme (LIS)
Local Enterprise Technical
Assistance Scheme (LETAS)
A scheme to help local
enterprises defray cost
incurred in modernizing and
upgrading their operations
through the engagement of an
external expert for a limited
period of time
Bridging Loan Programme
(this programme was
discontinued on 1 January
2004)
Trade Policy Review
Eligibility
Assistance
Companies with at least 30%
local shareholdings, fixed asset
investment (at net book value)
of between S$15 million and
S$50 million and employment
size of between 200 and
300 workers (for service
companies) will be eligible to
access LEFS short-term loans
such as factoring and working
capital facilities (valid up to
June 2004)
Use of LEFS loans
- Establish a viable business
- Modernize and automate plant and equipment
- Expand existing manufacturing capacity
- Diversify into other product lines
- Augment working capital needs
To be eligible, a company must
satisfy the following conditions:
- At least 30% local
shareholdings
- Employment size of not
more than ten workers
- In addition, the company's
group fixed assets (at net book
value) must not exceed S$15
million and if it is in the service
industry, group employment
size not exceeding 200 workers.
A fixed interest rate financing programme designed to help the very
small local enterprises gain better access to financing
To be eligible, a company must
meet the following criteria:
- At least 30% local
shareholdings.
- Fixed assets (at net book
value) must not exceed
S$15 milliona
If it is in the service industry,
employment size not exceeding
200 workersa
The interest rates are set by participating financial institutions for
their SME clients. A portion of the loans will be insured against
default risks by a private credit risk insurer. The government coshares the insurance premiums with the SMEs
Local enterprises must meet the
following criteria:
Generally assistance provided is up to 50% of cost of engaging
external expert for an approved short-term assignment depending
on the scope, depth and effectiveness of the assignment
- At least 30% local equity
Use of micro loans
- Establish a viable business
- Modernize and automate plant and equipment
- Expand existing manufacturing capacity
- Diversify into other product lines
- Renovate existing or new business premises
- Augment working capital needs like start-up costs or operational
costs
Local enterprises can make use of loans to:
- Establish new businesses
- Modernize and automate operations
- Expand existing businesses
- Diversify into other businesses
- Augment working capital needs
- Fixed assets (defined as net
book value of factory building,
machinery and equipment) not
exceeding S$15 milliona
- Employment size not
exceeding 200 workers for nonmanufacturing companies.
Areas of assistance that may be supported:
- Identification and solving of technical problems
- Technical improvements to present operations or process
- Mechanization, automation or computerization of operations or
processes
- Quality management systems
- Business development
- Financial development
- Market development
- Computerization and management information
- Human resource management
- Product development
To be eligible
- at least 30% of shareholdings
must be local
- Fixed assets (at net book
value) must not exceed
S$15 milliona
- If it is in the service industry,
employment size must not
exceed 200 workersa
A fixed interest rate financing programme designed to help small
and medium enterprises gain access to short-term financing.
Use of bridging loans
- Augment working capital needs like operational or business
restructuring costs
Table AIII.8 (cont'd)
Singapore
Scheme
Domestic Sector Productivity
Fund
WT/TPR/S/202
Page 139
Eligibility
Assistance
All Singapore-registered
business enterprises and
organizations including industry
associations and bodies
participating in the
transformation project are
eligible to apply. Business
enterprises are defined as
proprietorships, partnerships or
companies
Encourages companies within an industry or value-chain to
collaborate on projects to implement fundamental or radical
changes in strategy, operations or practices, leading to significant
gains in productivity and competitiveness for the industry as a
whole
The proposed project must meet
the following criteria:
(a) Project should represent a
major or critical part of an
overall industry
transformation plan.
(b) Project should involve the
introduction of new or vastly
improved practices,
activities, facilities and/or
systems in one of the
following aspects :
- Business scope (i.e.
change/extension into new,
higher value add activities)
- Business processes
- Information architecture
- Organization architecture
- Resources management
(i.e. people, land, materials,
energy, etc.)
(c) Project should lead to
specific deliverables/
outcomes that will upgrade
the industry to be among the
best-in-class
internationally according to
specified practices and
performance parameters such
as reduced cycle time,
reduced costs, increased
revenue, higher value added
per worker, etc.
(d) Project should involve at
least 3 companies working
together to achieve
economies of scale and
greater impact
(e) Project should have the
expressed support and
commitment of the applicant
companies. Where relevant,
the expressed support of an
industry association or any
formal company grouping
representative of the industry
or relevant government
agency would be useful
Table AIII.8 (cont'd)
WT/TPR/S/202
Page 140
Scheme
Trade Policy Review
Eligibility
Assistance
(f) Results achieved must be
shared with other companies
in the industry during the
mass adoption phase
Project must not have
commenced at the time of
application.
a
Computed on a group basis i.e. checking up to three levels for corporate shareholders holding 20% or more of the total
shareholding of the company and one level down where the company holds 50% or more of the total shareholding in a subsidiary
company.
Source: Singapore authorities.
__________